Grand jury probing Richardson donor

ALBUQUERQUE (KRQE) - A federal grand jury will convene in Albuquerque Tuesday to look a possible "pay-to-play" relationship between Gov. Bill Richardson's administration and a California financial firm hired to advise state government, according to separate reports.

The company, CDR Financial Products, was paid almost $1.5 million to advise the state on complicated bond transactions and to manage an escrow account. The firm also donated nearly $100,000 to Richardson political action committees.

News 13 has learned that the FBI and federal prosecutors have been investigating CDR's activities in New Mexico since last summer.

The thrust of the investigation is whether the company paid to play linking the political contributions to awarding of the state contracts.

Two national news outlets, the Washington Post and Bloomberg Financial News, both reported Monday on the investigation. The Albuquerque Journal reported two months ago that CDR's owner contributed $85,000 to Richardson organizations.

One contribution reportedly was made just after CDR got the first deal.

The other donation was made four days before it got the second job.

CDR spokesman Alan Ripp told Bloomberg's reporter the governor was not involved in the company's selection.

"To suggest that there is a pay-for-play element is just inaccurate," Bloomberg quoted Ripp as saying.

The Washington Post article said the federal grand jury investigation is looking into whether Richardson staff or aides were involved in the selection of CDR.

The Post reported the grand jury is expected to hear testimony in the federal courthouse on Tuesday from several witnesses. Those are reported to include officials at J. P. Morgan who worked with the state and CDR on the state's investments and from Richardson's political action committee.

In a statement the governor's office said it's aware of questions surrounding transactions at the New Mexico Finance Authority.

"We expect any state agency that is approached by federal officials to cooperate," Gilbert Gallegos, a spokesman for the governor, said.

There's no further comment from Gallegos or the governor.

NMFA director William Sisneros told Bloomberg that his agency has given investigators massive boxes of documents.